OPEC has additionally confirmed its forecasts for Oil demand, Commerzbank’s commodity analyst Carsten Fritsch notes.
OPEC revises its forecast for non-OPEC+ provide downwards
“It continues to count on a rise of 1.3 million barrels per day this yr and subsequent. OPEC thus stays considerably extra optimistic than most different market observers. In view of the demand dangers emanating from the commerce battle, OPEC’s forecasts needs to be handled with a sure diploma of warning.”
“On the similar time, OPEC revised its forecast for non-OPEC+ provide downwards. The lower cost degree is clearly taking part in a job right here, which is slowing down the enlargement of US Oil manufacturing. Based mostly on OPEC’s forecasts, the Oil market could be in a provide deficit this yr, which would offer leeway for a rise in OPEC+ Oil manufacturing.”
“We think about this evaluation to be too optimistic because of the very bold demand forecast.”
